After seeing the Jackass thread was closed, I realized that the problem was with the low-brow title. So I thought that maybe we can be a bit more subjective with this sort of needed thread, because we all see bikes with peculiar setups and it is nice to share the reasons for this.
I think this kind of thread is useful because you can learn a lot about how not to setup your bike, but in a way that is fun, but informative without the personal egos getting offended.
Let me start off the way we intend to finish, with this recent new posting on the forum.
I have no objection to conversions, and whilst this is clearly an early foray into the single speed world, I am rather curious about the saddle and handlebar heights. Maybe he/she has very short legs and likes to ride in a very upright position due to a back problem. I don't know, but I certainly would recommend raising the saddle and dropping the bars a bit.